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alexandr1967 [171]
2 years ago
9

Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households depo

sit $5,000 in currency into the bank, and the bank adds that currency to its reserves. What amount of excess reserves does the bank now have
Business
1 answer:
bekas [8.4K]2 years ago
5 0

Answer:

$4000

Explanation:

Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves

Total deposits = $100,000 + $5,000 = $105,000

Required reserves = 0.2 x 105000 = 21,000

total reserves = $20,000 + 5000 = 25,000

excess reserves = 25,000 - 21,000 = 4000

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Alex receives a raise at work and continues to work the same number of hours each week. what is the most likely way that his dem
Murljashka [212]

An inferior good is a type of welfare whose demand decreases when consumer income increases or demand increases when consumer income decreases. Therefore, if a consumer considers shirts to be inferior goods, the way he will stop consuming it will be when there is a real increase in his income.

In the case narrated, Alex had an increase in salary and remained working for the same number of hours. This means that with the same job, he will have a higher income, meaning there was a real increase in Alex's income. If he considers the $ 3 shirts a much lower asset, he will lessen the demand for it.

3 0
3 years ago
Read 2 more answers
Item1 1 points eBookPrintReferencesCheck my workCheck My Work button is now enabled1Item 1 Lanni Products is a start-up computer
larisa [96]

Answer:

Lanni Products

a1. Balance Sheet after getting the bank loan:

Assets:

Computer equipment        $30,000

Cash                                      70,000

Total assets                      $100,000

Notes Payable (Bank Loan) 50,000

Owners' equity                    50,000

Liabilities + Equity            $100,000

a2. Ratio of real assets to total assets:

= $30,000/$100,000  

= 0.3

b1. Balance Sheet after spending the $70,000 to develop its software product:

Assets:

Computer equipment        $30,000

Software                               70,000

Cash                                      0

Total assets                      $100,000

Notes Payable (Bank Loan) 50,000

Owners' equity                    50,000

Liabilities + Equity            $100,000

b2. The ratio of real assets to total assets

= $30,000/$100,000

= 0.3

c1. Balance Sheet after accepting payment of shares from Microsoft:

Assets:

Computer equipment        $30,000

Investment in shares          140,000

Cash                                      0

Total assets                      $170,000

Notes Payable (Bank Loan) 50,000

Owners' equity                   120,000

Liabilities + Equity             $170,000

c2. The ratio of real assets to total assets:

= $30,000/$170,000

= 0.2

Explanation:

a) Data and Calculations:

Assets:

Computer equipment $30,000

Cash                              20,000

Owners' equity           $50,000

Cash Account:

Beginning balance         $20,000

Bank loan                          50,000

Cash balance after         $70,000

Software development ($70,000)

Balance after software    $0

Microsoft shares             140,000 (2,000 * $70)

Loan payment                 (50,000)

Ending Balance              $90,000

Note Payable (Bank Loan) = $50,000

a) Lanni' real assets are the tangible assets (for example, computer equipment) that have an inherent value due to their physical attributes, and examples include metals, commodities, land, and factory, building, and infrastructural assets.  Lanni's Software is not treated as a real asset.  Similarly, the Investment in Microsoft is not a real asset.

4 0
3 years ago
The financial institution that generally charged the lowest rates on loans is
astra-53 [7]

Banks and Credit Unions usually charge the lowest rates on loans.

8 0
3 years ago
The owner of a ______ possesses the same interest as the owner of a fee simple absolute, except that this interest is subject to
KonstantinChe [14]

Answer:

Conditional Fee Estate

Explanation:

Based on the information provided within the question the term being described in the question is called a Conditional Fee Estate. This is (like mentioned in the question) similar to a fee simple except the property must eventually be passed on to the heirs. Which is why it is named as Conditional, because failure to do so will eventually cause the termination of the interest.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
givi [52]

Answer:

See explanation section

Explanation:

1. Debit     Cash                   $17,000

Credit            Service revenue (music)       $17,000

<em>Note: The academy receives cash by providing music services to the students.</em>

2. Debit     Prepaid Insurance          $4,200

Credit                    Cash                                 $4,200

<em>Note: The academy paid cash in advance to purchase insurance policy.</em>

3. Debit    Musical Equipment           $20,000

Credit                     Cash                                    $20,000

<em>Note: The academy paid cash for acquiring musical equipment.</em>

4. Debit     Cash                              $30,000

Credit             Notes payable                           $30,000

<em>Note: The academy borrowed cash by signing a notes from the bank.</em>

8 0
2 years ago
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